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2. JSPL Is Studying A Breakup Plan

Jindal Steel & Power Ltd. is considering a breakup plan as part of a restructuring to help trim its Rs 42,000 crore rupee debt pile and boost investor confidence in a company that was once India’s biggest steelmaker by market value.

The company is looking to split its steel, power and international businesses into three separate entities, Chairman Naveen Jindal told Bloomberg.

The steel unit will include the coal mines, while international business would have the Oman steel plant.

Any such plan would need the approval of lenders, regulators and the board, he said.

We are going to be really, really conservative. There is no question of taking more debt.

4. Why India’s Bulls May Take A Breather

Another thousand-point milestone is within reach for India’s benchmark equity index. Following the drubbing earlier this year, the S&P BSE Sensex is nearing the 39,000 level, the gauge’s third round-number mark since surpassing its life-time peak two months ago.

While there's optimism due to India's world-beating growth, lingering external risks particularly from oil and rupee, may give investors a pause.

“Markets have run up a lot and there’s certainly an element of risk when this happens -- it is never easy to buy in such times,” said Sunil Sharma, who oversees $1 billion of assets as chief investment officer at Sanctum Wealth Management Pvt.

Here are six charts that show why analysts are wary of giving Indian equities the all-clear.

5. What’s Spooking Balkrishna Industries’ Investors

Shares of Balkrishna Industries Ltd. fell the most in three months after the off-road tyremaker announced a surprise capital expenditure plan of Rs 1,700 crore.

The board of India's second-largest tyre firm has approved a $100 million capex plan to set up a new U.S. plant.

It will also spend up to Rs 1,000 crore on its India operations.

The entire outlay will be funded by a mix of debt and internal accruals.

“Balkrishna Industries has been going overboard with capex, starting with plans to set up a carbon black plant at Bhuj,” Joseph George, analyst at IIFL, said in a note.

6. SEBI Goes The Extra Mile To Recover Penalties

To ensure its penalties don’t go unpaid, India’s market regulator plans to recover fines even when appeals are pending provided its orders have not been stayed, according to two people with direct knowledge of the matter.

The Securities and Exchange Board of India has submitted a draft to the Securities Appellate Tribunal.

SEBI has already started implementing it in some cases, though the decision has not been made public yet.

Currently, a fine is recovered only after the tribunal and the Supreme Court dismiss a plea.

7. Bad Loan Resolution Remains A Distant Dream

After having failed to finalise resolution plans for most of the accounts which were in default on March 1, the Indian banking system is preparing to refer at least 60 stressed corporate accounts for insolvency.

These 60-odd cases add to the 12 accounts first referred for insolvency in June last year and the 28 sent to the National Company Law Tribunals in December.

At least three senior bankers, who spoke to BloombergQuint on the condition of anonymity, felt that any material resolution of stressed assets will take another 12-18 months.

To be fair, banks are chipping away at the pool of stressed assets. Meetings are being held, resolutions plans are being discussed and so on. But at each step, promoters faced with losing their businesses for the first time, are fighting back.

8. ESOPs By PSU Banks See Mixed Response

Four public sector banks are at varying stages of putting employee stock option plans in place. But neither employees nor analysts expect these plans to see much success. This, more than 18 months after the finance ministry gave an in-principle approval for such plans.

Allahabad Bank was among the first to announce an employee share purchase plan in February.

United Bank of India had announced an employee stock option at about the same time as Allahabad Bank but has failed to close the issue so far.

The other two banks which have board approvals for ESOPs in place include Canara Bank and Punjab National Bank.

10. The 2008 Crisis: Lessons Learned, Lessons Missed

Paul Sheard was the Global Chief Economist at Lehman Brothers in 2008, and then moved to S&P Global. From this unique vantage point he examines what went wrong and whether 10 years down, the gap between the real economy and financial economy persists. Are we better equipped to deal with the next crisis?

Lessons from the crisis:

Do everything possible to prevent a financial crisis from developing in the first place.